Sales slow before holiday spending

It was almost two weeks prior to Halloween when my sons pointed out the first signs of the Christmas shopping season trickling into the store displays. Here we were still trying to find vampire teeth and already stocking stuffers were beckoning to be bought. As a child I remember holiday decorations being taboo before Thanksgiving. Now with back to school supplies barely put away more needless knick knacks were needling their way onto our wish lists. I shook my head and we ended up leaving empty handed.

This seems to have been the attitude of many of my fellow Americans this October as retail sales waned just before Halloween. The lull in sales didn’t affect high end luxury items or staples like women’s and children’s clothes. Men’s clothing sales however, were nothing spectacular. Online sales held their own, but consumers are hesitating on large appliance purchases. Electronics, especially large TVs are moving very slowly.

Analysts have trimmed back their forecasts and expect to see more of the current conservative spending trends until after Thanksgiving as sales hit and holidays draw closer. Because of this stores have had to keep close watch on inventory so stock stays current but doesn’t build up before it’s time to move in this season’s must-have merchandise.

This year more than ever it seems consumers are limiting their spending to the truly need to have items like bread, milk and toilet paper and postponing purchasing the really want things on their list. Because of this mentality, it is likely retailers will see a flux in cold-weather items as chilly temperatures move in after an unseasonably warm fall.

"The consumer environment remains choppy with increased promotional levels," UBS analyst Roxanne Meyer wrote. With unemployment stuck at 10 percent and a lack of consumer confidence, experts project minimal increases over last year’s sales at best. That’s why retailers on and offline are looking to expedite the holiday shopping experience by luring consumers with product placement and early bird sales.

It’s a tactic that may backfire however as most consumers will wait until Black Friday to begin their annual spending spree. Others like me will find the maneuver transparent and avoid the hub bub altogether. Homemade Christmas gifts anyone?

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By Heather Fairchild - Heather is a multimedia developer, business owner and work-from-home mom.